Why PetSmart, Inc. Sank This Morning

Does this analyst make a good case? Or is it just more noise from Wall Street?

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

Now what: Deutsche expects PetSmart's same-store sales to remain sluggish in 2014 and even sees traffic declining at some point during the year. "The biggest driver to slowing traffic trends is increased online competition, in our view," noted Mike Baker. "Although the online channel is only a low single digit percent of the pet business today and less than 1% of PETM's total sales, we believe it will continue to grow, further impacting PETM's in store traffic and comps."

When you couple those seemingly reasonable concerns with the stock's P/E of nearly 20, I'd agree that waiting for a wider margin of safety is prudent.